Last April, Honda Motor Company and General Motors announced that they will be working together on next-generation electric vehicles. Specifically, Honda’s upcoming EVs will use the new global EV platform developed by GM. Now, it seems the two automakers are going to be sharing more than just EV platforms and GM’s Ultium battery.

In a joint announcement, Honda and GM have announced that they are planning to form a strategic alliance for the North American market. As part of the agreement, the two automakers will jointly develop future vehicle platforms as well as the electric and internal combustion powertrains to match. This would allow both automakers to cut costs and instead invest in future technology.

Apart from jointly developing platforms and powertrains, the alliance will also include the co-development of advanced technology such as advanced driver assist systems, infotainment, and connectivity. The two automakers will also collaborate in joint purchasing activities to “create further cost efficiencies by leveraging both companies’ respective scale, insight, and best practices”. 

While a GM-Honda partnership is certainly exciting, the alliance is still under the planning stage. At the moment, the two have only signed a non-binding memorandum of understanding. However, they did say co-development talks are set to begin immediately and “engineering work” beginning in early 2021.

“Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings. Combining the strengths of each company, and by carefully determining what we will do on our own and what we will do in collaboration, we will strive to build a win-win relationship to create new value for our customers,” said Seiji Kuraishi, executive vice president of Honda Motor Co., Ltd

For now, no specifics were mentioned as to what kind of vehicles the two automakers will be working on. Considering they did say platforms, expect it to be a wide range of models possibly ranging from small compacts to large SUVs.